IoD: Investors need bigger say in executive pay

Investors should be given a bigger say over executive pay to help rebuild trust in business, the Institute of Directors (IoD) has said.

The IoD is calling for pay strategies to be rethought, if they are rejected by 30% of shareholders.

Remuneration should then be put to a fresh vote, it said.

Despite some high profile rebellions in recent months, executive pay is usually approved at annual general meetings, the IoD added.

“There is still a pressing need to rebuild public trust in big business, to work in the long-term interests of investors and employees, rather than the short-term interests of managers,” said Oliver Parry, head of corporate governance at the IoD.

“Now is the time for sensible reforms which increase transparency and draw more engagement from shareholders.”

Lower threshold

At present, shareholders have a binding vote on future remuneration policy once every three years. If the policy is rejected by 51% of shareholders, it must be revisited.

The IoD is arguing that threshold should be lowered to 30%.

Shareholders also have a retrospective, non-binding vote on executive pay every year, and company annual general meetings often see vociferous criticisms of executive pay.

In April, BP shareholders, for example, rejected a pay package of almost £14m for chief executive Bob Dudley at the oil company’s annual general meeting. However, the vote was non-binding.

In November last year the government outlined its plans to make companies justify high levels of executive pay.

Among the measures under consideration were pay ratios, which would show the gap in earnings between the chief executive and an average employee.

it is important

Such peoples, who earn much and continually on Forex, constitute only 10% from the total traders’ quantity. They are subject of envy and they are called “Guru” of the foreign exchange market. They are confident in their future. They are a living example of the fact that to succeed in Forex is quite real.

So, if you visited this page — you have got a unique chance to be among these 10% and begin the experience of a trader right now!

PLEASE, PAY ATTENTION

Before you begin to work on Forex market, you should be aware that it’s not possible to born as a professional of the stock exchange, you may become it. Don’t expect that the way from a beginner to a professional will be easy and pleasant. If you want to become a real professional on Forex market, you should constantly perfect yourself, extend your knowledge and consolidate your skills. The main danger of every financial market can be a sudden fall of quotations. The fall of the main index may turn out a crash for the same stock exchange. Actions’ devaluation may bring in its turn, to a failure of entire companies. Forex market functions in a little different way. Forex cannot fall so easily. Even the most drastic collapse of Dollar will mean the proportional rise of another currency, Euro for example. Any currency fall on any scale cannot bring to the total crash of the Forex market. The currencies’ sale will continue under the usual schedule: somebody will get profit, but somebody will bear losses. The currency exchange always was the most stable, and the currency was the most liquid and liable instrument for trade.